"This upgrade is based on our view of a strong state budget management framework as indicated by New York State's recent history of improved structural budget balance with a strong focus on spending restraint and on-time budgets," said Standard & Poor's credit analyst David Hitchcock.

The agency said that New York has stemmed its deficits, which totaled $10 billion in 2011, and projects surpluses in future years.

"The new AA+ rating for the state’s General Obligation bonds reflects our recent history of on-time budgets, a well-funded pension system and spending restraint," DiNapoli said.

"Over the past few years, much has been done to put New York on a more solid financial footing, but some budgetary challenges remain. The state still needs to do more to curtail future budget gaps by aligning recurring revenues and expenditures."